burrows interactive case studies 2016
TRANSCRIPT
BURROWS INTERACTIVE
Burrows Interactive Design is an innovative, dynamic, multi disciplinary digital agency, specialising in brand identity and digital communications.
With industry experience spanning almost 35 years, we bring a wealth of creative and project production expertise.
We help clients create engaging, memorable brands and communications through compelling multi-platform experiences:
Brand experience development
Web and interactive multimedia
Visual communication design
Digital production
Project management – print, web, video
We don’t just work with clients, we collaborate with them. Taking the time to gather deep insights about their organisation, brand and strategic objectives assures mutual success.
We believe customer service is paramount and great work cannot happen without passion, commitment and attention to detail.
CASE STUDIES/AUGUST 2016
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CASE STUDIES/
THE CUSTOMER: ILUKA RESOURCES Iluka Resources is a major global mineral sands resource company. It is involved in the exploration, project development, operations and marketing of mineral sands products. The company’s objective is to create and deliver value for shareholders. Iluka is the largest producer of zircon globally, and a significant producer of the high-grade titanium dioxide products of rutile and synthetic rutile. The main mineral sands products of rutile, synthetic rutile, ilmenite and zircon have a wide range of consumer, lifestyle, and industrial applications. These include pigment production used in paints, plastics, papers, titanium metal production, welding electrodes, floor and wall tiles, sanitary ware, zirconium based chemicals, and zirconia metal applications. China and developing economy growth is an important influence on end demand. The major part of Iluka’s production base is in Australia, with mining and processing operations in Virginia, USA.
Iluka Resources Limited
CREATE AND DELIVER VALUE FOR SHAREHOLDERS
Annual Report
2014
MINERAL SANDS – PART OF EVERYDAY LIFE
Iluka_2014_cover_FA.indd 4 20/03/2015 9:54 am
2015
ILUKA REVIEW
Acacia papyrocarpa Western Myall tree Eucla Basin, South Australia
The Company Iluka Resources
LocationPerth, West Australia
TypeMining
Web Sitewww.iluka.com
Employees853 people in five countries
Iluka Resources Equity Market Video Interviews
THE CHALLENGEIluka Resources Senior Management Conference – Equity Market Video Interviews
• Short video interview with a selection of institutional fund managers – some investors some not. Likewise with a couple of analysts
– one likely favourably disposed, one less convinced.
• Q&A’s:– when you think about Iluka from an investment perspectives; what
are its strengths; what its weaknesses
– how is Iluka differentiated from other resource companies you have reviewed
– from your perspective, how would you describe the culture of Iluka
– what other observations would you have about Iluka
The Company Iluka Resources
LocationPerth, West Australia
TypeMining
Web Sitewww.iluka.com
Employees853 people in five countries
The Iluka Website Interface redesign
THE CHALLENGEIluka Resources company website – Navigation structure/Interface redesign
• Provide an engaging online experience while allowing visitors to the site to access all content areas and find the information they need easily
• Update and review content in all areas is displayed and how that information is readily accessed by the end user.
THE SOLUTIONWe developed a design solution that highlights exceptional content navigability, usability and accessability to detailed information delivery to the user.It is ‘user’ focussed in it’s design and providing an engaging experience for the target audience.
Visit the site:www.iluka.com
Baringo Brand Identity development
THE CHALLENGEDevelop a refresh Brand Identity and positioning line and Brand Image campaign for Baringo wine and food New Gisborne in Victoria.
• Baringo Website redevelopment. Navigation structure, content development, Interface design to reflect new identity and positioning:- Baringo – A regional wine and food haven Provide an engaging online experience while allowing visitors to the site to access all content areas and find the information about what’s on at Baringo easily.
• Develop an advertising and promotional campaign for Baringo.
THE SOLUTIONWe developed a design solution that highlights the exceptional quality of services Baringo has on offer – superb wines and dining experience, provedore, bistro/cafe, theatre, wine bar, wine shop and banquet room.
The Company Baringo
LocationNew Gisborne, Victoria
TypeHospitality
Web Sitewww.baringo.net.au
View the interactive Banquet Room brochure online>
The Company Baringo
LocationNew Gisborne, Victoria
TypeHospitality
Web Sitewww.baringo.net.au
Baringo – A regional wine & food haven
Provedore I Wine Bar I Bistro I Banquet Room I Wine Shop I Theatre
THEATRE
HIGH TEACAFE CATERING
Open 7 Days
Films... Lectures... Performances.
Local and International wines and boutique
beers.
WINE SHOP
PROVEDORE
WINE BAR
Every Sunday 12 – 4pm
Coffee Roaster‘Red Star’ winner of the
2015 Golden Bean award.
JAPANESE IZAKAYA
Tues. Wed. Thurs from 6pm
BISTROFriday Saturday Sunday
BANQUET ROOM
41 | Visitor Guide
Gisborne South
GISBORNE
NEW GISBORNE
Mt Macedon
Hesket
Newham
Rochford
NCEFIELD
WOODEND
NorthMELBOURNE
You can ust ang down at e Rock or
ind a ce ar d r to “ nock, nock, nock”
Calder Fw
yM79
Stat
ion
Rd
www.baringo.net.au
283 Station Road New Gisborne, Victoria 3438PH: 03 5428 2144 E: [email protected]
Map Poster_press_FA.indd 1 16/09/2015 2:06 pm
Dreaming of a boutique wedding
Nestled at the Foothills of Mt Macedon is Baringo, a regional food & wine haven and the perfect wedding location:
Picnic weddings on the lawn, Garden weddings, Banquet style weddings, Cocktail Party weddings, Degustation weddings with matching wines.
A special place for your entire Wedding and all under the beautiful canopy of the Macedon Ranges.
Find our more by calling Janet on 54282144 or www.baringo.net.au
www.baringo.net.au
283 Station Road New Gisborne, Victoria 3438PH: 03 5428 2144 E: [email protected]
Open 7 days
Celebrate@Baringo
The Company Iluka Resources
LocationPerth, West Australia
TypeMining
Web Sitewww.iluka.com
Employees853 people in five countries
THE CHALLENGEIluka Resources Investor Relations Guide App. – Concept, design, Navigation structure/Interface design
Content and technical development
• The Iluka Investor Relations Guide is designed for those wishing to gain an understanding of the main elements of the company, its assets, industry context and basis for shareholder value generation.
THE SOLUTIONThe Iluka Investor Relations Guide for Apple iPad and Android provides online and offline access to recent information relating to the company (ASX: ILU).It includes the following information and features:
- Iluka’s investment proposition, shareholder alignment, capital management
- company overview, resource base and operations- mineral sands industry
- sales and marketing, customer structure, global locations- historical financials, investment and industry presentations- access to latest releases- events calendarThe App can be downloaded from the Apple iTunes Store (App Store) and Andrioid version from Google Play by searching for “Iluka Investor”.
Content DevelopmentBurrows Interactive worked closely with the Iluka Investor Relations team to develop all App content from scratch. Creative Director Bill Burrows and his team developed Interface Content elements and Navigation concepts and digital artwork Photography, maps, diagrams and charts were designed and purpose built to work in Ipad Retina Display and Android formats.
The Iluka Investor Relations App
Iluka Resources Limited
CREATE AND DELIVER VALUE FOR SHAREHOLDERS
Annual Report
2014
MINERAL SANDS – PART OF EVERYDAY LIFE
Iluka_2014_cover_FA.indd 4 20/03/2015 9:54 am
Light bulbs, dishes, glasses, clock parts, food colouring, ceramic knives, pans
Mobile phones, plastic, printer inks, paper, packaging
Ceramics, sanitary and toilet basins, glass, faucets for taps, cosmetics, pharmacuetical products, toothpaste, anti perspirants, sunscreens
Solar panels, electrical insulators, bricks/cement, fibre optics, exterior and interior paint, tiles/anti-pollution coatings
Bathroom/lifestyleRoof/building/construction Home/office Kitchen/utilities
Mineral Sands – part of everyday life
A number of the applications of mineral sands products are shown in this section. From everyday applications in the home and workplace, to medical, lifestyle and industrial applications, the unique properties of titanium dioxide and zircon are utilised in a vast and increasing array of products and applications.
Cover Image: Mineral sands products are used in an array of everyday use applications. The floor and wall tiles shown in the cover image contain zircon. Zircon contributes the whiteness and the abrasion and heat resistance that tiles provide. Ceramics are also the floor covering of choice in many developing economies. The paint coatings on the wall, the plastic of the stool and toilet seat use titanium dioxide in the form of pigment. Even the toothpaste contains inert and safe colouring derived from titanium dioxide. Demand for mineral sands products is linked to urbanisation, to increases in personal wealth and consumption of a range consumer goods.
PART OF EVERYDAY LIFE
ILUKA ANNUAL REPORT 2014
1
Titanium metal, desalination plants, zirconia-nuclear medicine, zirconium metal, corrosion resistant coatings
Golf clubs, tennis racquets, bicycle frames (titanium)
Dental implants, hip and bone replacements, heart pacemakers, kidney dialysis
Brake linings/pads, car parking sensors, automotive paint, catalytic converters, automotive electrics, rubber products
Healthcare/medicineAutomotive Sporting goods/recreation Aircraft/industry
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Other Growth Options
Metalysis – New Titanium Powder Production Technology
Iluka has established an Investment Agreement with the private, UK based, Metalysis Limited for an interest of 18.3 per cent in the Company.
This investment forms a part of Iluka’s alliancing and new ventures approach. Metalysis is seeking to develop a single stage process for the transformation of various metals into powder form. This includes initial work relating to tantalum and titanium dioxide feedstocks.
If Metalysis can commercially produce titanium metal powder direct from rutile, and potentially synthetic rutile, material reductions in the cost of titanium metal could follow. Significantly lower prices for titanium metal could dramatically expand the applications of titanium metal, for example, replacing stainless steels and high performance steel alloys and opening up demand in other markets such as the manufacture of automobiles. The application of titanium powder in 3D printing also presents exciting opportunities. Such developments would be positive for high grade feedstock demand.
Iluka has one Board seat (a non-executive director of Iluka) and also one observer (an executive).
Iluka is pleased with Metalysis’ progress in proceeding towards potential commercialisation and in terms of Iluka’s involvement this has included:
■ provision of various feedstocks, including synthetic rutile, for testing in a small industrial unit, with valuable information gained which may allow the “customisation” of feedstocks;
■ Iluka’s involvement in the provision of both technical and project management expertise to assist Metalysis management with their commercialisation activities. This has included reciprocal visits between Metalysis and Iluka’s technical teams with a view to sharing knowledge and systems in the development and commercialisation of the Metalysis business.
Iluka has a right to increase its shareholding to between 20 to 24.9 per cent in the event of an Initial Public Offering by Metalysis.
MINERAL SANDS PROJECTS AND OTHER
GROWTH OPTIONS
22
Iluka’s sales and marketing function continued to evolve to better service customer needs and expand Iluka’s global market presence. Key features are indicated on these pages.
BelgiumNetherlandsAmsterdam
Dubai
Wilmington,North Carolina
US
Rio de Janeiro
Raleigh
Newcastle,Delaware
Nashville
Europe
MiddleEastSpain
Durban
Warehouse and small lot distribution facility
Corporate/marketing/exploration offices
Legend
Adelaide
Melbourne
Surat
Qingdao
Shanghai
Malaysia
Indonesia
Sri Lanka
XiamenZhenjiang
Vietnam
Singapore
China
Australian operations
Perth
MARKETING AND SALES
FULL RANGE OF QUALITY PRODUCTS MARKET ANALYSIS
Iluka provides a full range of titanium dioxide grade feedstocks as well as zircon products for all applications.
In total the Company has 53 products with different technical specifications. This includes 18 different specifications of zircon products. During the last 18 months, the Company launched 8 new products, designed to meet specific end market applications.
Iluka conducts detailed industry analysis in both the titanium dioxide and zircon markets. In zircon, this has included the completion of a comprehensive ceramic analysis survey, with an updated survey commenced in late 2014. Summary results of the 2013 zircon in ceramics tile survey are available on Iluka’s website. Iluka was a founding member of the Zircon Industry Association and is an active participant and supporter of industry initiatives for the research into the unique properties of mineral sands products and their increased applications.
Digital Printing of Ceramics
18
Iluka operations – 2013 and 2014 production levels
Production 2013 2014
kt kt
Australian operations
Eucla / Perth BasinsZircon 186 240Rutile 33 30Synthetic rutile 59 0Ilmenite 211 103
Murray BasinZircon 60 93Rutile 94 148Ilmenite 184 168
Australian operations totalZircon 246 333Rutile 127 177Synthetic rutile 59 0Ilmenite 395 271
United States operationZircon 40 25Ilmenite 190 95
Note: Numbers are rounded to nearest whole number.
OPERATIONAL AND PRODUCTION
OVERVIEW
2013 2014 2015
Notes:
2015 operating regimes dependent on market demand conditions. * MSP – mineral separation plant.
100% Utilisation
100% Utilisation
Mine idled March Concentrate continues to be processed
Murray Basin Mining Woornack, Rownack, Pirro Mine (WRP)
Hamilton MSP
Jacinth-Ambrosia Mining
Narngulu MSP
Tutunup South Mining
SR2 Kiln
3 other Kilns
US Mining (Virginia)
Stony Creek MSP
Production settings
The following chart coveys Iluka’s production settings in 2013 and 2014, along with expected production settings in 2015. Iluka’s approach is to adjust production in light of market conditions. For this reason, the Company has been operating at lower than usual operating rates. The Company
has the ability to rapidly reactivate production in light of demand recovery and the progressive drawdown of inventory levels. Iluka’s production response to lower market demand conditions has been associated with a cash conservation focus.
~50% Utilisation
~40% Utilisation
Idled June
Idled June
Near full utilisation
~80% Utilisation
~80% Utilisation
~50% Utilisation
Idled
Idled
Idling Concorde mine end February; Brink mining to continue
Feed dependent 50% Utilisation
Idled previous years
~70% Utilisation
~50% Utilisation
Restart February
Restart April
Brink mining continues
Feed dependent 70% Utilisation
Idle
ILUKA ANNUAL REPORT 2014
17
Ore Reserve/Mineral Resource movements
Eucla Basin Ore Reserves decreased by 0.6 million tonnes of heavy mineral, principally associated with mining depletion from the Jacinth deposit and write-offs.
Eucla Basin Mineral Resources decreased by 0.6 million tonnes of heavy mineral, principally associated with mining depletion from the Jacinth deposit and write-offs.
Eucla Basin, South Australia
Ore Reserves decreased by 1.1 million tonnes of heavy mineral due to mining depletion at the Woornack, Rownack and Pirro deposits (1.0 million tonnes of heavy mineral) and write-offs.
Mineral Resources decreased by 1.3 million tonnes of heavy mineral with mining depletions and write-offs for finalised mining operations (0.3 million tonnes of heavy mineral).
Murray Basin, Victoria / New South Wales
Ore Reserves in the Perth Basin did not change due to the idling of Eneabba (March 2013) and Tutunup South (June 2013).
Perth Basin Mineral Resources decreased by 0.4 million tonnes due to write-offs.Perth Basin,
Western Australia
Ore Reserves in the United States decreased by 0.1 million tonnes of heavy mineral. Mining depletion (0.2 million tonnes) and write-downs were offset slightly by 0.1 million tonnes of increased ore reserves at the Brink operation.
Mineral Resources decreased marginally. Mining depletions were almost offset by increased resources at the Brink operation.
Atlantic Seaboard, Virginia / North Carolina,
United States
There were no changes recorded for Sri Lanka.Sri Lanka
ILUKA ANNUAL REPORT 2014
23
PEOPLE AND PRODUCT CLOSER TO CUSTOMERS
TRACK RECORD OF DELIVERING ON PROMISES
Iluka has an extensive network of warehouses and distribution facilities, with a new centre in Wilmington, North Carolina established in 2014, and a total of 14 global points of product distribution. The Company has marketing and sales offices in 10 locations with a skilled, multi lingual team, speaking 17 languages. Iluka operates 24/7 account and customer relationship management systems.
Iluka seeks to be a dependable partner for its customers and the long term growth of their businesses. This is reflected in a variety of ways, including the shipment of all products in 2014 to defined specifications, as well as the Company’s longer term commitment through exploration, innovation, research and project development to the continuation of reliable, high quality supply.
DEDICATED PRODUCT SALES TEAMS
In 2014, Iluka established separate, dedicated titanium dioxide and zircon sales teams, comprising industry experts, better able to cater for the specific requirements of these two markets and their various end market applications. Iluka also has a mineral sands trading arm.
Zr Ti
CHINA – MARKET DEVELOPMENT
Building on Iluka’s established market presence in China, the Company announced the creation of a China Technical Centre, to be operational in 2015. This centre will be staffed by Chinese and international experts with a capability to service both titanium dioxide and zircon customers. With a full service laboratory it will be equiped to provide analysis of products, opacifier tests and includes a chlorinator for feedstock optimisation.
Artist’s impression of the China Technical Centre
BelgiumNetherlandsAmsterdam
Dubai
Wilmington,North Carolina
US
Rio de Janeiro
Raleigh
Newcastle,Delaware
Nashville
Europe
MiddleEastSpain
Durban
Warehouse and small lot distribution facility
Corporate/marketing/exploration offices
Legend
Adelaide
Melbourne
Surat
Qingdao
Shanghai
Malaysia
Indonesia
Sri Lanka
XiamenZhenjiang
Vietnam
Singapore
China
Australian operations
Perth
19
Operational commentary
Australia
■ Iluka operated its two Australian mineral separation plants at lower than usual utilisation levels, in light of market conditions.
■ Murray Basin mineral separation plant utilisation was ~80 per cent, with concentrate from the Jacinth-Ambrosia mining operation in South Australia in the plant blend (at up to 30 per cent) to improve operational efficiencies.
■ Mining in the Murray Basin at the Woonack, Rownack, Pirro deposits continued, with this mining to reach the end of its economic life in the first quarter of 2015. Both finished product and concentrate inventory has been built to supply the market prior to the planned commencement of the next mining operation – Balranald, New South Wales.
■ The Jacinth-Ambrosia mine operated throughout the year; concentrate inventory levels year on year increased associated with full mining utilisation.
■ All synthetic rutile kiln activity was idle in 2014, with the largest kiln (SR2) to recommence production in the second quarter of 2015. Synthetic rutile product during the year was supplied from inventory.
■ Mining at the Tutunup South mine in the South West, Western Australia remained idled, but with mining recommenced in February 2015.
Virginia, United States of America
■ Concord mine in Virginia (one of two chloride Iluka ilmenite mines in the US) was idled in February, given sufficient ilmenite from inventory and the Brink mine to meet expected market demand.
■ The mineral separation plant at Stony Creek, Virginia operated at ~50 per cent utilisation.
■ Iluka announced in December 2014 that the idling of the Virginia operations is likely in 2015.
ILUKA ANNUAL REPORT 2014
Highest global zircon assemblage deposit.
Ilmenite mining, mineral processing and ilmenite upgrading (synthetic rutile).
Major rutile production, significant associated zircon stream.
Chloride ilmenite and associated zircon production.
Iluka’s flexible production options results in the company’s total indicative production of its main products varying according to demand.
INTEGRATED FLEXIBLE PRODUCTION BASE
EUCLA BASIN SOUTH AUSTRALIA
MURRAY BASIN VICTORIA/NEW SOUTH WALES
PERTH BASIN WESTERN AUSTRALIA
VIRGINIA UNITED STATES
ILUKA ANNUAL REPORT 2014
27
Tapira, Brazil – Large Titanium Mineralisation
In July 2014 Iluka established a Joint Development Agreement and Intellectual Property Agreement with Vale S.A. for the staged evaluation and potential development of major titanium mineral bearing deposits at Tapira, located in Minas Gerais State, Brazil.
The deposit contains titanium dioxide ores (anatase, ilmenite), rare earth elements and magnetite, located in a region with infrastructure and logistics and associated with Vale’s phosphate rock mine in Tapira. The deposit has the potential to accommodate world class titanium feedstock and rare earth element operations.
Iluka’s involvement is through a series of stages which ultimately could result in the Company having a 49 per cent interest in the project. The first stage consists of a market study for final product market entry, a review of pilot plant design and an ore characterisation study to determine the preferred design before progressing to further stages.
32
Material aspects
Environment Health and Safety Society EmployeesWater
Waste
Biodiversity
Land rehabilitation and closure
Energy and carbon
Occupational hygiene and health
Safety
Radiation
Contractor management
Emergency preparedness
Stakeholder engagement
Grievance management
Indigenous people
Cultural heritage
Community partnerships
Socio-economic contributions
Anti-bribery and corruption
Diversity
Talent management
Employee engagement
Volunteering
The long term success of the business relies on attracting, retaining and developing quality people who share the Company’s commitment to safe, responsible conduct in all its operations. It also requires sound planning, control and risk management systems and building strong and healthy relationships with stakeholders that are of mutual benefit.
Reporting approach The 2014 Sustainability section of the Annual Report details the Company’s sustainability approach and performance relating to Iluka led exploration activities, projects, operations, rehabilitation sites, facilities and offices globally.
Iluka is seeking to progressively align its reporting with the Global Reporting Initiative (GRI) Sustainability Reporting Guidelines G4, as they relate to its business, its key risks and the stakeholders the Company engages with. The 2014 report addresses the aspects of the business considered the most material and, where practicable, reports against G4 indicators relating to these aspects of Iluka’s business.
MaterialityIluka employs a number of processes for identifying material sustainability aspects, including impact assessments, risk assessments, and ongoing stakeholder engagement. Aspects are considered material if they have the potential to impact the Company’s ability to achieve business objectives or are of material concern to stakeholders.
SUSTAINABILITY
Rehabilitated land at Waroona in the South West of Western Australia.
Iluka believes in targeting high levels of performance and pursuing leading sustainability practices. The Company’s actions reflect values of Commitment, Integrity and Responsibility.
8
Key Elements of Iluka’s Approach - 2014
■ Health and safety
- Continued organisational and cultural focus on maintaining a safe work environment
- Total recordable injury frequency rate of 3.6, compared with 4.6 in 2013
- Lost time injury frequency rate of 0.9 compared with 0.3 in 2013, considerably lower than the 2010–2012 average of 2.9
■ Sustainability
- No major environmental incidents, with 84% of incidents level one (lowest severity) - Awarded South Australian Premier’s Award for Excellence in Environmental Management,
associated with rehabilitation in a mixed use regional reserve in the State
■ Ore Reserves and Mineral Resources
- Ore reserves decreased by 1.8 million tonnes to 24.9 million tonnes, mainly reflecting depletions
- Approximately 15 years reserve cover at 2014 depletion rate
- Mineral Resources of 176.4 million tonnes (inclusive of Ore Reserves), approximately 7 times Ore Reserves
■ Financial performance
- Net earnings after tax, a loss $62.5 million, inclusive of $86.5 million after tax non cash impairment
- Group EBITDA margin of 32.5%
- Free cash flow of $196.3 million
- Net debt of $59.0 million with available undrawn facilities of ~$708 million
- Gearing (net debt/net debt + equity) of 3.9%
■ Market conditions
- Partial zircon demand recovery, with demand most robust in China and North America
- Conditions for demand recovery in high grade titanium feedstock market evident, particularly chloride pigment
KEY ELEMENTS OF 2014
Summary Ore Reserves
In Situ Heavy Mineral Tonnes (millions)
Opening Reserves 2014 26.6
Production/Depletions (1.6)
New Ore Reserves/Adjustments (0.1)Closing Ore Reserves 24.9Ore Reserves Net Change (1.8)
Summary Mineral Resources
In Situ Heavy Mineral Tonnes (millions)
Opening Mineral Resources 2014 178.7Production/Depletions (1.6)New Mineral Resources/Adjustments (0.6)Closing Mineral Resources 176.4Mineral Resources Net Change (2.3)
Totals may not add due to rounding
Ore Reserves decreased by 1.8 million tonnes of heavy mineral, following mining depletion and adjustments.
Mineral Resources decreased by 2.3 million tonnes of heavy mineral, net of mining depletion and adjustments (sale, relinquishment, exploration discovery and development and write-downs).
Ore Reserves Cover (Ore Reserves divided by annual depletion) is approximately 15 years at 2014 depletion rates (a lower than usual year of depletions), while the amount of Mineral Resources (which is inclusive of Ore Reserves) is approximately 7 times the Ore Reserve level. The movement in Ore Reserves and Mineral Resources are described on the next page.
ORE RESERVES AND MINERAL
RESOURCES
The following table provides a summary of Iluka’s Ore Reserves and Mineral Resources as at 31 December 2014. Iluka’s complete Ore Reserves and Mineral Resources statement, reported in accordance with the JORC Code (2012 Edition), is available on pages 157 to 161.
16
ILUKA ANNUAL REPORT 2014
33
Where Iluka operatesDifferent sustainability aspects are relevant to Iluka in different locations and at different points in the value chain. As depicted in the accompanying map, all of Iluka’s operations and rehabilitation sites are in OECD countries, hence material sustainability aspects are those relevant to these locations.
Iluka also operates warehouse facilities, marketing offices, and exploration sites in several OECD and non-OECD countries; however these are typically staffed with less than 10 people and have a limited sustainability profile.
As the Company advances projects and examines growth opportunities in new locations - through exploration, acquisitions, and joint ventures - risk assessments are undertaken to identify location-specific issues and risks. Iluka’s sustainability framework and capabilities will be evaluated in accordance with this to ensure the Company can maintain its commitment to safe and responsible conduct in all operating environments.
Adelaide
Melbourne
BelgiumNetherlandsAmsterdam
Dubai
US
Wilmington
Rio de Janeiro
Wilmington,North Carolina
Newcastle,Delaware
Nashville Raleigh Qingdao
Shanghai
Malaysia
Indonesia
Sri Lanka
XiamenZhenjiang
Vietnam
Singapore
China
Europe
MiddleEast
Australian operations
Perth
PerthBasin
MiningArea C
EuclaBasin
MurrayBasin
Spain
Durban
148
6
2
1
1
1
2
1
1
12
678
In 2014 Iluka employed 853 people, with 826 of these working in Australia and the US.
9
ILUKA ANNUAL REPORT 2014
■ Operational flexibility
Continuation of significant operational adjustments in light of market conditions
- Combined 2014 zircon, rutile and synthetic rutile production continued at ~40-50% of ‘high cycle’ settings
- All synthetic rutile capacity idled during year
- Idled Concord mine in Virginia – Brink mining continued
- Lower utilisation rates at Iluka’s three mineral separation plants
- Build of concentrate inventory, especially in Murray Basin
■ Shareholder returns
- Total dividend of 19 cents per share fully franked (6 cents interim dividend, 13 cents final dividend)
- Share price performance – 31.1% decline for the year vs 14.5% decline for Materials Index
- 5 year total shareholder return of 107.0% vs Materials Index decline of 22.2%
■ Mineral sands projects
Evaluation of internal mineral sands projects advanced
- West Balranald, New South Wales; Cataby, Western Australia; Hickory and Aurelian Springs, US
- Eucla Basin satellite deposits at pre-feasibility stage
- Puttalam Project, Sri Lanka – regulatory approval work progressed
■ Growth options
- 18.3% interest in Metalysis – UK based technology company seeking to commercialise titanium powder production
- Phase 1 evaluation of large Tapira deposit, Brazil, with Vale S.A.
The Company Iluka Resources
LocationPerth, West Australia
TypeMining
Web Sitewww.iluka.com
Employees853 people in five countries
The Iluka 2014 Annual Report
The Company Iluka Resources
LocationPerth, West Australia
TypeMining
Web Sitewww.iluka.com
Employees853 people in five countries
THE CHALLENGEIluka Resources Virtual Minesite Tour• Provide an interactive online experience so investment market and
broking analysts can research at their own pace
• Provide a way for investors to research online texturally for further more detailed information about Iluka mining operations.
THE SOLUTIONCreating a Responsive ‘User Experience’We developed a ‘Responsive Agnostic design solution’– one piece of content that re contextualised to suit the device the viewer was using – Desktop, laptop, Tablet or Phone this solution provided a slick immersive viewing experience that highlights exceptional content navigability and usability whilst providing a solution to both web based interactive delivery as well as offline ‘travelling roadshow’ presentation style delivery.
It is ‘user’ focussed in it’s design and responsive in technical development – providing an engaging experience for the target audience.
Visit the site:http://www.ilukavirtualminesitetour.com
The Iluka Virtual Minesite Tour
2015
ILUKA REVIEW
Acacia papyrocarpa Western Myall tree Eucla Basin, South Australia
4
Key Elements of Iluka’s Approach - 2015
KEY ELEMENTS OF 2015
FINANCIAL PERFORMANCE
SAFETY PEOPLE
PROJECTS ADVANCED
GROWTH OPTIONS
OPERATIONAL FLEXIBILITY
ENVIRONMENT
SHAREHOLDER RETURNS
ORE RESERVES AND MINERAL RESOURCES
5
■ Safety- Continued organisational and cultural focus on maintaining a safe
work environment- Total recordable injury frequency rate of 6.7, compared with 3.6 in
2014; higher year-on-year, but still a material improvement on levels before the Company's Safe Production Leadership initiative in 2011
- Stable lost time injury frequency rate of 0.9
■ Environment- No major environmental incidents, with 88% of incidents level one
(lowest severity)- Continued focus on high standards of environmental management- 3rd consecutive year of reducing “open” area via land rehabilitation
activities
■ People- Continued focus on organisational diversity- Awarded 2015 AIM WA, West Business Pinnacle Award for
Workplace Diversity Excellence
■ Ore Reserves and Mineral Resources- Ore Reserves decreased by 1.8 million tonnes to 23.0 million tonnes,
mainly reflecting depletions and adjustments- Approximately 12 years reserve cover at 2015 depletion rate- Mineral Resources of 173 million tonnes (inclusive of Ore Reserves)
■ Financial performance- Mineral sands revenue of $820 million, a 13% increase from 2014- Mining Area C iron ore royalty EBIT of $61.6 million, an 8% decrease- Net earnings after tax of $53.5 million- Mineral sands EBITDA margin of 33%- Free cash flow of $155 million- Net cash of $6 million, compared with net debt of $59 million
as at 31 December 2014
■ Operational flexibility- Combined 2015 zircon, rutile and synthetic rutile production of 690
thousand tonnes, up 29% - Woornack, Rownack, Pirro operation, Murray Basin, Victoria –
mining ceased as planned- Synthetic rutile kiln 2, Western Australia – successfully recommenced- Tutunup South mine, Western Australia – successfully reactivated
as ilmenite feedsource for synthetic rutile kiln 2 - Virginia operation, USA idled at year end- Iluka's three mineral separation plants continued to operate at reduced utilisation rates- Suspension of mining and concentrating activities at Jacinth-Ambrosia from 16 April 2016, announced 16 February 2016
■ Shareholder returns- Total dividend of 25 cents per share fully franked 6 cents interim
dividend 19 cents final dividend, fully franked- Share price performance – 3.0% increase for the year vs 19.5%
decrease for S&P/ASX 200 Materials Index- 3 year total return of -32.0% vs S&P/ASX 200 Materials Index
of -33.7%
■ Mineral sands projects- Balranald, New South Wales – 1st stage definitive feasibility study
near completion; Stage 2 commencing in 2016- Cataby, Western Australia – definitive feasibility study completed- Sonoran, Eucla Basin – pre-feasibility study completed- Puttalam, Sri Lanka – scoping study completed; pre-feasibility study
planned for 2016- Hickory and Aurelian Springs, USA – studies suspended given idling
of Virginia operation
■ Growth options- 28.8% interest in Metalysis – UK-based technology company seeking
to commercialise titanium powder production- Phase 1 evaluation of large Tapira deposit, Brazil, in combination
with Vale S.A.- Detailed evaluation, due diligence related to potential acquisition
of Kenmare Resources Plc
ILUKA REVIEW 2015
The Company Iluka Resources
LocationPerth, West Australia
TypeMining
Web Sitewww.iluka.com
Employees853 people in five countries
The Iluka 2015 Review
6
Iluka maintains an investment in all of the main stages of the mineral sands process, from resource development through to delivery of customer benefits. It does this aligned to its principal objective – to create and deliver shareholder value, while conducting its operations to the highest standards in terms of governance, environmental, health and safety management and a commitment to the communities in which it operates.
MINERAL SANDS VALUE CHAIN
Mineral Sands Value Chain
66
■ Focus on return on capital as proxy for return on shareholders’ equity
■ Pay as dividends a minimum of 40% of free cash flow, not required for investing or balance sheet activity
■ Distribute maximum practicable level of available franking credits
■ Maintain a strong, effective and efficient balance sheet
■ Investments assessed in terms of market supply/demand as well as financial characteristics
■ Resource identification, delineation and resource-reserve conversion focus
Exploration – mineral sands
■ Consistent investment
■ Internal geological and geophysical expertise
■ Australian presence, expanding international activities
Exploration – other minerals
■ Specialist team – initial focus on minerals on Iluka tenements
■ Farm in and farm out arrangements
Innovation and technology
■ Commercialisation of non- conventional resources
■ New mining approaches – resource conversion potential; production efficiencies
■ Integrated mining and processing operations
■ Flex production in light of market demand
■ Mining, concentrating and processing experience across multiple ore bodies over 60 years
■ Land rehabilitation and environmental management – key considerations in mine planning/operation
■ Capability to reactivate idled capacity (particularly synthetic rutile kilns)
■ Options at advanced evaluation
- Balranald, Cataby, Hickory, Aurelian Springs
■ Earlier stage evaluation
- Jacinth-Ambrosia satellite deposits; Puttalam (Sri Lanka)
■ Joint ventures
- Tapira mineralisation (Brazil with Vale S.A.)
■ Adjacent investments
- Metalysis Limited, UK 28.8% interest
- Potentially disruptive new technology
- Focus on titanium powder production from high grade feedstocks (rutile and synthetic rutile)
Mergers and acquisitions
■ Assessment of mineral sands deposits/companies
■ Willingness to invest counter-cyclically where strategic rationale and financial merit exist
MINING AND PROCESSING, ENVIRONMENTAL
MANAGEMENT
RESOURCE DEVELOPMENT
MINERAL SANDS PROJECTS/GROWTH
OPTIONS
CAPITAL DISCIPLINE AND BALANCE SHEET
MANAGEMENT
ILUKA REVIEW 2015
7
Titanium metal, desalination plants, zirconia-nuclear medicine, zirconium metal, corrosion resistant coatings
Golf clubs, tennis racquets, bicycle frames (titanium)
Dental implants, hip and bone replacements, heart pacemakers, kidney dialysis
Brake linings/pads, car parking sensors, automotive paint, catalytic converters, automotive electrics, rubber products
Healthcare/medicine
Automotive
Sporting goods/recreation
Aircraft/industry
Ceramics, sanitary and toilet basins, glass, faucets for taps, cosmetics, pharmaceutical products, toothpaste, anti-perspirants, sunscreens
Bathroom/lifestyle
Mineral Sands
Mobile phones, plastic, printer inks, paper, packaging
Solar panels, electrical insulators, bricks/cement, fibre optics, exterior and interior paint, tiles/anti-pollution coatings
Roof/building/construction
Home/office
ILUKA REVIEW 2015
7
■ Governance – highest standards with established codes, policies and practices
■ Integrating economic, environmental and social considerations into business practices
■ Ensuring safe and responsible conduct underpins everything the Company does
■ Environment – water, biodiversity, land rehabilitation and closure focus
■ Health and safety – occupational hygiene and health, safety, leadership and training
■ Communities – stakeholder engagement, Indigenous employment and training
Wide range of quality products
■ 48 products, with different technical specifications
■ 18 specifications of zircon
■ Range of TiO2 grade products
■ Product development focus
People and product closer to customers
■ 14 global points of distribution
■ Logistics flexibility – small lot/container/cargo
■ Marketing offices in 10 locations
Dedicated product sales teams
■ TiO2 and zircon sales teams
■ Technical experts who understand customer businesses
■ Trading arm
From everyday applications in the home and workplace, to medical, lifestyle and industrial applications, the unique properties of titanium dioxide and zircon are utilised in a vast and increasing array of products and applications.
SUSTAINABLE DEVELOPMENT
CUSTOMER BENEFIT FOCUS
MINERAL SANDS – PART OF
EVERYDAY LIFE
34
Reporting approachThe Sustainability section of the Iluka Review details the Company’s sustainability approach, 2015 focus areas and performance relating to Iluka exploration activities, projects, operations, rehabilitation sites, facilities and offices globally.
Iluka is seeking to progressively align its reporting with the Global Reporting Initiative (GRI) Sustainability Reporting Guidelines G4, as they relate to its business, its key risks and the stakeholders with which the Company engages. In accordance with these guidelines, this section concentrates on those sustainability aspects of the business considered material for 2015.
Report boundary and scopeAll of Iluka’s current operations, comprising mining, processing and rehabilitation activities are in Australia and the United States, both OECD (Organisation for Economic Co-operation and Development) member countries. Further information on these operations is provided on pages 22 to 23.
Iluka also operates warehouse facilities, marketing offices, and conducts exploration in other jurisdictions, as shown on page 35. While some early stage activities are being undertaken in non-OECD countries, based on the current operating profile, sustainability aspects in OECD countries were assessed as most relevant.
As the Company advances projects and examines growth opportunities in new locations through exploration, acquisitions, and joint ventures risk assessments are undertaken to identify location-specific issues and risks. This process is described in the new country entry process on page 39.
SUSTAINABILITY
Both a cultural and a systematic approach are adopted to ensure sustainability issues are identified, addressed and monitored and that legal obligations are met.
ILUKA REVIEW 2015
35
Adelaide
Melbourne
Antwerp, BelgiumAmsterdam, Netherlands
Dubai
US
Rio de Janeiro
Wilmington,North Carolina
Newcastle,Delaware
Nashville Raleigh
Port Klang,Malaysia
India
Indonesia
Sri Lanka Vietnam
Europe
MiddleEast
Australian operations
Perth
PerthBasin
MiningArea C
EuclaBasin
MurrayBasin
Castellon, SpainNules, Spain
Durban
Singapore
137
3
1
1
3
21
4
763
2
China
Qingdao / Huangdao, ChinaQingdao, China
Shanghai, ChinaXiamen, China
Zhenjiang, China
Kazakhstan
Legend
Warehouse and small lot distribution facility
Corporate, marketing, exploration offices
In 2015 Iluka employed 917 people, with 900 of these working in Australia and the US.
Governance and RiskPages 37 to 39 Pages 40 to 43
EnvironmentPages 44 to 51
Our PeoplePages 52 to 57
CommunitiesPages 58 to 64
Code of conduct
Bribery and corruption
Sustainability governance
Identifying and managing risk
New country entry
Emergency preparedness
Safety
Health and Safety performance
Occupational health and hygiene
Radiation
Environmental incidents
Biodiversity
Land rehabilitation and closure
Water use
Waste management
Energy efficiency and carbon emissions
Diversity
Talent management
Employee volunteering
Stakeholder engagement
Grievance management
Indigenous relations and cultural heritage
Employment and economic contribution
Partnering and community investment
Materialitylluka employs a number of processes for identifying material sustainability aspects, including a review of current and emerging sustainability issues impacting the industry, risk assessments, peer benchmarking and stakeholder engagement. Aspects are prioritised according to their potential to impact the Company’s ability to achieve business objectives or are of material concern to stakeholders.
The material sustainability aspects identified for 2015 are illustrated below. Further information on Iluka’s management approach and performance in these areas can be found in the following sections.
The Company Iluka Resources
LocationPerth, West Australia
TypeMining
Web Sitewww.iluka.com
Employees853 people in five countries
THE CHALLENGEHow investors research and make investment decisions is changing. The channels between companies and investors are changing. The new platform for engagement is digital – Iluka wanted to forge a deeper connection with stakeholders.
THE SOLUTIONThe Iluka 2011 Review and Annual Report interactive website allows users to view both the 2011 Annual Report and Review documents on the web and devices.The user is presented with an interactive interface, drop down menus provide highlights from both documents as well as downloadable PDF’s.User selects an item from the navigation panel and the content loads smoothly into the viewer. Presented as a double page spread with the ability to click through pages.Other viewing functions are zoom tool and downloadable single pdf pages.
Visit the site:www.iluka.com/annualreport2011
The Iluka Interactive 2011 Review and Annual Report
Actinogen Medical Investor Update
The Company Actinogen Medical
LocationSydney, Australia
TypeMedical
Web Sitewww.actinogen.com.au
THE CHALLENGEActinogen Medical is a publicly listed (ASX: ACW) clinical-stage biotechnology company undertaking research in Alzheimer’s disease and other age-related neurodegenerative diseases.
THE SOLUTIONWe developed a a refreshed layout for the company’s Investor Update newsletter - featuring a comprehensive ‘infographic diagram their Alzheimers treatment drug Xanarnem.
Linfox ‘Solutions’ Asia Pacific Magazine
The Company Linfox Logistics
LocationMelbourne Australia
TypeTransport Logistics
Web Sitewww.linfox.com
THE CHALLENGELinfox ‘Solutions Asia Pacific magazine• Design a new contemporary simple engaging content template
layout style for ‘Solutions’
• Provide a Digital interactive online experience so staff and management can read anywhere at their own pace
THE SOLUTIONCreating a Responsive ‘User Experience’We developed a ‘Responsive Agnostic design solution’– one piece of content that re contextualised to suit the device the viewer was using – Desktop, laptop, Tablet or Phone.Using the world’s best digital publishing platform – we transformed Solutions into engaging interactive experience.That work and look great across all digital platforms. Features included:• Interactive table of contents• Searchable content• single double pages, download and print buttons• Usage analytics• Online subscription• Optimised for smart phones and tablets• Branding and background customisation
View Linfox Solutions online>
Iluka Quarterly UpdateFrom Mine Manager, Jamie McDonald
As we start into the New Year, I hope all have had a safe, happy holiday, and all are just as keen and ready to kick start another new year. In starting, the end of 2014, Jacinth-Ambrosia (J-A) achieved a TRIFR rate of 2.43 against an overall corporate target of 4.41, J-A also performed and successfully completed cleaning of the water line that feeds the concentrator, the water line tracks along 32kms from Borefields to the actual mine site, execution without any incidents, a commended effort . Overall there has been a great effort from all in the operations as J-A.
On our quarterly production report (31st December 2014) results showed an increase in Zircon and Rutile. We saw Zircon, Rutile and Synthetic Rutile (Z/R/SR), production at 535 thousand tonnes, compared with 2013 - 471 thousand tonnes. Sales volumes for 2014 increased 5 per cent to 616 thousand tonnes of (Z/R/SR); this resulted in softer global demand for Zircon and recovering demand for high grade titanium dioxide (Quarterly Production Report 31st Dec 14, ASX Release 2015).
We look forward to rolling out our internal Training and Development framework, which has been developed Dave Wright. The new framework will be implemented in 2015; providing Iluka employees clear indications of their professional development and guidance in what career path they choose within the company.
Iluka’s current annual reporting is underway, once completed we look forward in sharing with you our activities going into 2015, for any further information on quarterly production report, visit the website www.iluka.com
From Superintendent –Environment, Rehabilitation and Community Relations, Nick Travers Currently J-A site, are updating the environmental approval program for Environmental Protection and Rehabilitation (PEPR). The PEPR provides an integrated approach to managing all stages in the life cycle of the mine, including its closure and completion. The update will capture key scientific learnings gained since operations commenced in 2009, consolidate minor variations to the current approval and enable improved project economic outcomes. Critically, the updated approval seeks to maintain and enhance compliance with approved lease conditions and environmental commitments for the operation. Iluka plans to submit the updated PEPR for government approval in Q1 2015.
Update – Rehabilitation Tina Law
Finishing up in 2014, we transferred mine tailings (waste) into “Cell 2” filling the complete pit by October 2014. After allowing the tailing to dry, the area is currently being reshaped using bull dozers. Final planning is also under review for a creek and dune, which will be returned to these areas, and later in this year, 2015 we will begin to return soil profiles.
Rehabilitated areas that came to completion in 2013/14 are coming along well. With vegetation growth spreading across the area (see picture below), we witnessed during monitoring of vegetation, birds (pipits and thornbills) and lizards occupying the re-growth (see picture), which is a positive outlook
Iluka Out and About2014 – Community Events
J-A Environmental Superintendent - Nick Travers Receiving the award by SA Minister for Resources Mr Tom Kousti.
Environmental Excellence – Jacinth-Ambrosia (J-A) awarded the South Australia Premiers Award in 2014. Recognising J-A environmental management and rehabilitation programs, partnerhsips and research development to date.
Science Alive – Adelaide ShowgroundAugust 2014 Iluka set up an information booth at the Science Alive Expo in Adelaide, students across the CBD area came to the event, taking with them a new understanding of science and career pathways.
Rehabilitation Specialist Joanne Lee, with students visitng the Science Alive Expo.
Volunteer
Iluka Community NewsWelcome to Iluka’s Community Newsletter, a quarterly publication which keeps you up-to-date with Iluka’s operations in and around the Far West Coast region
www.iluka.com Ph: 8300 2000
Lara Taylor, Charles Coleman, Tyson Glover
Bruce Zimmer, Adam Grogan
May 2014 - Iluka Sponsored work uniforms for the young people working at “Bernadettes Place” (Café) Eyre Futures.
2014 - Yalata Sports CarnivalOnsite medics Lara Taylor, Tyson Glover, Adam Grogan and Bruce Zimmer volunteered as on call medics at the Yalata Football Carnival. Charles Coleman (Day Crew Operator) also volunteered his time to umpire the matches on the day.
September 2014 - Ceduna Area School Site Tour
Indigenous Youth Leadership Program (IYLP) ‘Reconciliation Dinner’ May 2014
Leeroy Bilney, Iluka’s Community Relations Officer attended the Indigenous Youth Leadership Program (IYLP) ‘Reconciliation Dinner’ held at Westminster College. Leeroy caught up with some of the student (pictured above) recipients of the Far West Coast Aboriginal Scholarship Program.
If you would like any further information
about Iluka’s operations or public activities, please contact Community Relations Officer Leeroy Bilney on +61 (0)477 708 085 or [email protected]
Iluka Community NewsWelcome to Iluka’s Community News, where we keep you up-to-date with Iluka’s operations in Victoria and Southern New South Wales.
Iluka in the Community
Water flowing into Toolondo
Water flowing into Toolondo
Update from the Manager - Dan McGrath, Manager, Eastern Operations
In June, Iluka submitted approval documents to the Environmental Protection Authority and Horsham Rural City Council for the continued
regulated disposal of by-products from the company’s Hamilton MSP at a dedicated location at the former Douglas mine site. The State Government requires renewed approvals once the MSP stops processing concentrate sourced from Iluka’s WRP mine. This is anticipated to occur in mid 2016. This is the same practice the company has been undertaking for a decade, with no change in operating practice being sought.The company’s proposal has attracted vocal opposition from one particular landcare group. It should be noted that many of the unsubstantiated claims by this group are based on incorrect or misinterpreted information, with regulatory authorities consistently supporting Iluka’s practices at all of its Murray Basin sites. While Iluka respects the right of all stakeholders to express their views, the company believes it is important that discussion is conducted on an objective, factually supportable basis. Iluka also believes that any objective assessment of the facts and scrutiny of the company’s practices will demonstrate that its planned actions have and will continue to be undertaken in a responsible manner, with negligible environmental impact and in accordance with all necessary regulatory arrangements. In keeping with Iluka’s transparent approach, the company will supplement the statutory exhibition process by making all relevant information available to interested stakeholders, including through an onsite public information day.Further information on the Hamilton by-products disposal project can be found on the company’s website at http://www.iluka.com/company-overview/operations/murray-basin-victoria-australia/douglas-by-products-disposal
Serra Terra
Over the Queen’s Birthday weekend in June the Iluka Igunas, a team of eight Iluka staff, joined the annual Serra Terra walking relay in the Grampians National Park. The relay raises funds for the Dunkeld Community Centre.
Relay for Life
Local Iluka employees, family members and friends joined together to participate in the 2015 Relay for Life in Hamilton on Friday 20 and Saturday 21 March. A team of 15 members walked in the 18 hour, overnight relay-style event and much fun was had by all. Support from the Iluka community was extremely generous with over $2,000 being raised through morning teas and BBQ’s onsite at Hamilton MSP. All money raised from Relay for Life is used by the Cancer Council to help fight against cancer.
Murray to MoyneTwo Iluka employees participated in annual M2M ride. Terry Cameron and Rob Grazziadelli (the Sprocket Rockets) rode 200 kms over the weekend in the bike relay which once again saw the Rockets raising much appreciated funds for the Mulleraterong Centre in Hamilton.
Standing TallIluka have had a long association with the highly regarded Standing Tall program, which assists young people and the whole community, with the company providing funding of $10,000 in 2015 to support the program. Scott McQueen and Tom Blackwell continue to provide direction to the Committee of Management and a number of our people are directly involved with the mentoring program.
Lake Toolondo
In January 2015 Iluka reached an agreement with Victoria Recreational Fish and the State Government to donate 5,000 megalitres of unused water entitlement from Rocklands Reservoir to Lake Toolondo near Horsham. This water helped to maintain water levels for fish to survive through the summer.As reported in state wide media channels: Victorian Premier Daniel Andrews said “We’ve got a balanced outcome - there’s about a $100,000 cost to the taxpayer involved in getting the water from where it is at the moment, but in terms of the water itself we haven’t had to pay any money for it. Iluka have effectively donated that water, an excess entitlement, back to the environment, back to recreational fishing.”
Iluka Resources
BUSINESS FRAMEWORK
CURRENT ORE RESERVE / MINERAL RESOURCE BASE
FINANCIAL FOCUS
n 10 year Ore Reserve cover
n Resources ~ 6 times Ore Reserves
n Resource phase predominantly chloride TiO2
n External resource “options” secured
n Integrated mining and processing operations
n Flex production in light of market demand
n Capability to quickly reactivate idled capacity (particularly synthetic rutile kilns)
n Geological/grade control, processing metallurgical strengths
n Enhancing the returns generated from Iluka’s resource and production base as well as identifying and advancing new technologies.
Objective
Mineral sands company involved in exploration, project development, operations and marketing
Create and deliver value for shareholders
MINERAL SANDS OPERATIONS
MINERAL SANDS FOCUS (INTERNAL) MINERAL SANDS GROWTH FOCUS
MARKETING, MARKET DEVELOPMENT RESOURCES DEVELOPMENT
Infrastructure and Approachn Direct customer sales arrangementsn Technical buying decision – product quality, specifica-
tions importantn Dual sales / marketing team – zircon and titanium
feedstocksn Multiple international warehouses, flexible logis-
tics to meet customer needs Market Analysisn In-country analysisn End sector demand analysisn Industry / technical evaluation capabilities
- tile testing facility- annual zircon intensity study- competitor and inducement analysis
Demand Growthn Detailed evaluation of China pigment sector
capacity economics, supply trends, government policy
n Implications:- opportunities to supply sulphate feedstocks to
installed pigment capacity- high grade titanium dioxide opportunity to
nascent chloride capacityn Metalysis
- disruptive technology- potential positive for high grade demand
n Zircon Industry Association- Iluka instrumental in establishing- zircon qualities/new end applications- zircon “branding”
Project Evaluation and Developmentn Resource – reserve conversionn Sustaining / growth
productionn Gated approach to internal
optionsn Dependent on portfolio
optimisationn Market demand
considerationsn Capital efficiency focus
Exploration Mineral Sandsn Internal expertisen Consistent commitmentn Major Australian presencen Expanding international
presencen Non Mineral Sandsn Small, specialist teamn Initial focus on commodities
on Iluka mineral sands tenements
n Selective targeting of other commodities
Innovation and Technology
Areas of focus:n Production efficienciesn New product developmentn Commercialisation of
non-conventional resourcesn Technical input to resource
development (e.g. Tapira), new technologies (e.g. Metalysis identification)
ACQUISITION, MERGERS, JOINT VENTURES
CAPITAL DISCIPLINES
Mineral Sandsn Assessment and economic analysis of all known
mineral sands depositsn Clear criteria applied to evaluation:
- scale, quality, margin characteristics- complementarity to Iluka portfolio- ‘market fit’
Examples:n Sri Lanka
- large, scaleable sulphate ilmenite- staged approach
n Tapira, Brazil (Vale JV)- large, scaleable chloride ilmenite feedstock- staged approach
Other Mineralsn Industry structuren Supply / demand market characteristicsn Materiality of opportunityn Iluka ability to apply technical / marketing
expertiseExamples:n Metalysis- disruptive Ti powder / metal technology- potential high grade TiO2 demand influence (Iluka
rutile)
n Refer Briefing Paper
320 $47.1billion by
2017China has one of the world’s highest rates of smoking, with about 320 million people —a quarter of the world’s smokers.
7 in 10 non-smoking adults were exposed to second-hand smoke in a typical week.
In China, chronic respiratory diseases are the second leading cause of death with tobacco smoking, air pollution and biomass fuel use being the major risk factors.
The global market for respiratory drugs is estimated to be $47.1 billion by 2017.
Asia is projected to make up 27.5% of that market ($13B).
millionsmokers
China: market relevance and market size
ASIA
$13B
$13.3B
$20.8B
AMERICAS ROW
1:6 Tobacco related deaths worldwide are in China
Consequences of smoking include cardiovascular disease, diabetes, cancer and chronic respiratory disease.
Cardiovascular Diabetes Cancer Chronic Respiratory
Data flow/Infographics
■ Remote Device Operation
■ Remote Training
■ Remote Service
■ SW Updates
■ User Training
■ User Access Management
Patie
nt D
ata
Asse
ssm
ent
eyeCloudeyeConnect Specialist Review Panel
Locations Locations
HospitalHome
Field Clinic
Clinic
Mobile Clinic
Hospital
Operator
Operator
Operator
Patient
Patient
Patient
Patient Data Management
■ Data Storage ■ Data Encryption■ Controlled Access
■ SW Updates
■ SW Maintenance■ Backup Data
Patient Data Patient Data
Doctor’s Recommendation Doctor’s Recommendation
Ingeneus Telehealth Platform
MobileQuality of Service
Light bulbs, dishes, glasses, clock parts, food colouring, ceramic knives, pans
Mobile phones, plastic, printer inks, paper, packaging
Ceramics, sanitary and toilet basins, glass, faucets for taps, cosmetics, pharmacuetical products, toothpaste, anti perspirants, sunscreens
Solar panels, electrical insulators, bricks/cement, fibre optics, exterior and interior paint, tiles/anti-pollution coatings
Bathroom/lifestyleRoof/building/construction Home/office Kitchen/utilities
Mineral Sands – part of everyday life
A number of the applications of mineral sands products are shown in this section. From everyday applications in the home and workplace, to medical, lifestyle and industrial applications, the unique properties of titanium dioxide and zircon are utilised in a vast and increasing array of products and applications.
Cover Image: Mineral sands products are used in an array of everyday use applications. The floor and wall tiles shown in the cover image contain zircon. Zircon contributes the whiteness and the abrasion and heat resistance that tiles provide. Ceramics are also the floor covering of choice in many developing economies. The paint coatings on the wall, the plastic of the stool and toilet seat use titanium dioxide in the form of pigment. Even the toothpaste contains inert and safe colouring derived from titanium dioxide. Demand for mineral sands products is linked to urbanisation, to increases in personal wealth and consumption of a range consumer goods.
PART OF EVERYDAY LIFE
ILUKA ANNUAL REPORT 2014
1
Titanium metal, desalination plants, zirconia-nuclear medicine, zirconium metal, corrosion resistant coatings
Golf clubs, tennis racquets, bicycle frames (titanium)
Dental implants, hip and bone replacements, heart pacemakers, kidney dialysis
Brake linings/pads, car parking sensors, automotive paint, catalytic converters, automotive electrics, rubber products
Healthcare/medicineAutomotive Sporting goods/recreation Aircraft/industry
Data flow/Infographics